Health Care
- Article Tools
- Email this Article
- Print this Article
- Rss Feed
- Related Articles
- Medco Names Thompson Director
- Hospital Fans Watch HCA
- UnitedHealth Sinks on Shakeup
- Del.icio.us
- Digg
- StumbleUpon
UnitedHealth UNH is paying a steep price for indulging its superstar CEO. William McGuire, one of the most accomplished corporate leaders in recent history, must leave the company. McGuire resigned as UnitedHealth's chairman and will soon vacate his post as CEO after collecting backdated stock options that helped turn him into a paper billionaire. The company's stock jumped nearly 8,500% with McGuire at the helm. UnitedHealth's top lawyer and five of its board members, beginning with the chairman of its compensation committee, are headed out the door as well. The ousters come after independent reviewers uncovered significant evidence that McGuire had improperly pocketed in-the-money stock options and oversaw a generous compensation program that allowed others, including his popular right-hand man, to do the same. Stephen Hemsley -- who has served as the company's second-in-command for years -- has been spared, however. Indeed, Hemsley is poised to become the company's next CEO when McGuire officially retires in December. Analysts felt some measure of comfort as a result. "While yesterday's announcement wasn't the best possible outcome for United's stock, it was pretty close," CIBC analyst Carl McDonald wrote after reviewing Sunday's announcements. "In our view, Hemsley has always been the key to this situation -- and since he's staying, McGuire's departure should not have a major detrimental impact on UNH's stock."
The former Department of Health and Human Services secretary will join its board.
Results at the soon-to-be-private chain still grip investors.
Shares drop 2% as McGuire steps aside.
Yahoo! is among the most searched stocks on TheStreet.com. Here's what Cramer had to say about the stock recently.
Catch up on his thinking on the hottest topics of the past week.
Investors will have to deal with a Fed meeting and another flood of earnings and economic data.
Ensco International and Echelon have the potential to move higher in coming days.
See who made what calls.
The addition of video is helping telecom companies compete against cable and satellite companies.
The June West Texas Intermediate contract reflects selling pressure ahead of Tuesday's expiration. But stocks in the sector are generally trading higher.
See who made what calls.
Keep on top of the market and the critical information you need to make more profitable investing decisions.
Sponsored by:
RSS
